Retirement Plans Effective January 1, 2022 Full-time and regular part-time employees are automatically enrolled in the Florida Retirement System(FRS) on their first day of employment. FRS has two retirement plans from which employees may choose - the Pension Plan or the Investment Plan. The initial retirement plan election period is eight months following the month of hire. The default retirement plan is the Investment Plan. Employees must contribute 3% of their salary, on a pre-tax basis, to FRS. This will automatically be deducted each pay period. Employee contributions in the Investment Plan will accumulate earnings, minus investment fees and administrative charges. Employee contributions in the Pension Plan will not earn interest. Your salary will be reduced by the amount of the employee contribution before determining the federal income tax deduction. Members must FRS Investment Plan – The plan be separated for three calendar months to be eligible to receive a allows employees to control how refund of their employee contribution (it would be the employee’s their retirement contributions responsibility to contact FRS). Employees are given a one-time, are invested. The law defines the irrevocable choice to switch plans. employer contributions, but your FRS Pension Plan – The traditional plan provides a formula-based ultimate benefit depends in part on income at retirement. This defined benefit plan also provides a the performance of your investment disability and a death benefit. The vesting period is six (6) years of funds. Employees will have eight creditable service for members hired before July 1, 2011. The vesting (8) months after the month of hire period is eight years of creditable service for members hired on or to elect an FRS Plan, if no election after July 1, 2011. is made the choice defaults to the Investment Plan. Vesting period is Deferred Retirement Option Program (DROP) – This option, within the one (1) year. FRS Pension Plan, allows employees to retire and have their retirement benefits accumulate in the FRS Trust Fund, earning tax-deferred interest, while they continue to work for an FRS employer and receive their regular pay and benefits. To be eligible, an employee must meet the FRS Retirement definition.* • If you are a DROP participant or a reemployed retiree who is not allowed to renew membership, you will not be required to make the 3% employee contribution. • If you have an effective DROP begin date on or after July 1, 2011, you will have an annual interest rate of 1.3%. *Retirement Definition: If hired before July 1, 2011, requires six years of creditable service and age 62 or 30 years of service regardless of age. If hired on or after July 1, 2011, requires eight years of creditable service and age 65 or 33 years of service regardless of age.
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FRS Senior Management – As defined by state law, employees must contribute 3% of their salary, on a pre-tax basis, to FRS. This will automatically be deducted each pay period. Members must be separated for three calendar months to be eligible to receive a refund of their employee contribution (it would be the employee’s responsibility to contact FRS). Employees are given a one time, irrevocable choice to switch plans.
